Altcoins
That’s when the most important coins will rise from the “danger zone” and explode
Famous cryptocurrency analyst Michael Van De Poppe recently watched his latest video and discussed the current state and future of the cryptocurrency market, focusing on altcoins. He stated that the altcoin market is highly volatile, capable of sharp increases as well as major corrections, as seen recently. Major altcoins are down more than 40% in the past two weeks, with some on-chain altcoins down more than 70%.
This volatility raises questions about the future of altcoins or whether the downward trend will continue. Regarding the current correction, several factors need to be considered.
Impact of Ethereum ETF Delay
Poppe gave two reasons to explain the scenario. First, he stated that Altcoins, such as Ethereum, are struggling due to the uncertainty of when the Ethereum ETF will begin trading. Although the ETF has been approved, it has not yet been listed. This delay is causing market confusion and instability.
The approval process involves detailed documents to ensure regulatory compliance, but actual trading has not yet begun, leading to continuous market corrections. Once the ETF begins trading, it could spark more investor interest and potentially lead to a market recovery, similar to what happened with previous ETFs.
Macroeconomic factors
The second topic revolves around recent macroeconomic events such as the CPI (consumer price index), PPI (producer price index) and FOMC (Federal Open Market Committee) announcements. These events heavily influence market sentiment and policy decisions, particularly regarding interest rates. CPI and PPI data came in lower than expected, suggesting a potential easing of inflationary pressures and potentially signaling future rate cuts by the Federal Reserve (Fed).
Altcoins typically perform well during periods of quantitative easing (QE) and low interest rates when global liquidity increases. However, recent market trends, including a stronger dollar and lower expectations of rate cuts, have had a negative impact on cryptocurrencies, which are considered risky assets.
Anticipate the market reversal
He expects a turnaround in the cryptocurrency markets, expecting the current recession to end soon. The key catalyst for this turnaround is the potential listing of the Ethereum ETF, which is likely to generate significant interest and confidence in the market.
Currently, Bitcoin is doing well, but Ethereum and many other altcoins are still far below their highest prices. He says to watch Bitcoin’s dominance and how the price of Ethereum compares to that of Bitcoin, as these factors could indicate whether altcoins will start to do better.